---
title: "US and India inflation hit multi-year highs on energy surge"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286121955.md"
description: "US and India experienced significant inflation increases in April, driven by surging oil prices due to Middle East conflicts. This energy shock contributed notably to the rise in the US Consumer Price Index (CPI). Central banks are now faced with challenges, as the likelihood of Fed rate cuts in 2026 diminishes, while the Reserve Bank of India maintains its current stance. Economists caution that rising fuel costs may lead to broader price increases across various goods and services, further straining household budgets."
datetime: "2026-05-12T14:55:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286121955.md)
  - [en](https://longbridge.com/en/news/286121955.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286121955.md)
---

# US and India inflation hit multi-year highs on energy surge

Energy shock impact: April inflation in the US and India surged as oil prices spiked due to Middle East conflict, with energy driving a significant share of US CPI's monthly increase. Policy dilemmas ahead: Central banks face a balancing act as temporary shocks risk becoming entrenched; Fed rate cuts in 2026 now look unlikely, while RBI stays on hold. Spillover risks grow: Economists warn higher fuel costs could push up prices across goods and services, from groceries to airfares, tightening household budgets further.

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